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For 1st time, group veep August Busch IV listed among top-paid AB execs as he passed $1 mil mark in salary/bonus in 2001. Got $510,000 salary, up $70,000, 16% while bonus jumped 10% to $565,000. Chairman August Busch III?s salary and bonus hit $4.5 mil, up about 8%. Prexy Pat Stokes? salary and bonus jumped $358,000, 12% to $3.3 mil. Biggest % gainer among top execs: exec veep John Ja-cob, up $200,000, 19% to $1.25 mil. Group veep Randy Baker also passed $1 mil.

Publishing Info

  • Year 2002
  • Volume 4
  • Issue # 9
And that?s before rollout of Bacardi Silver, SKYY Blue, other Miller brands and Captain Morgan. IRI data shows flavored alc bevs grabbed 2.3 share of volume YTD thru Feb 24, up 0.7 share. Nearly 2/3 of malternative share was Smirnoff Ice (+300%) and Mike?s Hard (+45%). Bacardi Silver, available just a week, came in #7. Gettin? whacked this period: Zima, Doc Otis, Te-quiza, Hooper?s and Rick?s. Micro biz up 5% but share flat at 2.8, just 0.5 ahead of FABs. Top-4 brands (Sam, Sierra, Shiner, Redhook) up 5-9% each. Fat Tire still afire, nearly doubled.

Publishing Info

  • Year 2002
  • Volume 4
  • Issue # 10
So sez consultant Joe Thompson, of Independent Bev Group. For 30 ?vertically integrated? (in same mkt) transactions from 1/98 to 4/01, ?Blue Sky? was 2.05x gross profit or $5.84 per case. (Not including trucks, buildings, inventory, etc.) But for 14 transactions done from 5/01-2/02 Blue Sky fell to 1.81x gross profits or $5.79 per case. Joe thinks drop in price because of ?geography and brand mix of our transactions, not that prices are actually declining.? Pointed to several key causes of ?stabilization?: ?es-calating supplier requirements, the cost of competing, a slower industry and weak overall economy.?

Publishing Info

  • Year 2002
  • Volume 4
  • Issue # 12
Smirnoff Ice up 216% and got 44 share of malternatives thru Mar 24 in supers, sez IRI (doesn?t include coolers). Mike?s at 15 share of segment and up 36% yr-to-date. Bacardi Silver at 7 share and #4 brand with just a few weeks of data. (No SKYY Blue data yet.). So segment up about 50%, but 3 brands were 2/3 of segment. Other older brands getting creamed: Zima (#3) down 23%, Tequiza down 25%, Doc?s down 31%, Zima Citrus down 31%, Hooper?s Hooch Hard Orange down 39% and Rick?s Spiked down 55%. All those brands in top 10, but Rick?s and Hooch also have growing line extensions.

Publishing Info

  • Year 2002
  • Volume 4
  • Issue # 15
As Boston Beer rolls out Sam Adams Light, it will be spending heavily on mktg, (the ?bulk? of it on Light, sez ceo Jim Koch ), radically changing its biz model. So far, Boston Beer selling more beer but makin? less $$ in 2002. In 1st qtr, Boston Beer shipments up 14,000 bbls, 5.4%, but oper income down $3.4 mil, 64% as ad, selling and promo expenses up $6.5 mil, 42%. Shipments and orders so far suggest about a 20% jump in Apr-May, Boston said. Sam Adams Light only in New Eng and some test mkts, but resulted in avg of 30% incremental growth in those mkts, according to prexy Martin Roper. Boston Beer expects to be up 10-20% for full yr 2002; it said.

Publishing Info

  • Year 2002
  • Volume 4
  • Issue # 16
They?ll try ?em but they don?t really care for ?em much, sez very interesting new research from Morgan Stanley?s Bill Pecoriello. Morgan Stanley conducted focus groups of NYC guys 21-25 who drank imports or drank light beers and a 3d group of guys who tended bar in NYC. ?The perception that malternatives are inferior to real spirits, [their] feminine image, low ?drinkability, ?flash in the pan? stigma? all are factors that undermine repeats among the guys we talked to,? wrote Bill. Tho ?strength of the spirits' brands, distinctive packaging and media investment? will generate trial, even trial get-ting dicier now because of ?the ?me-too? halo, the lack of real spirits, feminine image and bartenders? ?not-at-my-bar? attitude.? In an earlier survey of 1300 consumers, 5% of beer users were ?adopters? of malternatives (meaning they would use 'em at least occasionally) and 60% of those were female. To meet very aggressive growth targets, sez Bill, malternatives will need more young male adopters.

Publishing Info

  • Year 2002
  • Volume 4
  • Issue # 17